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SECURE 2.0 Adds New Escapes from the 10% Early Withdrawal Penalty

April 12, 2023

“SECURE 2.0 Adds New Escapes
from the 10% Early Withdrawal Penalty”

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with all the details…

The IRS can issue some confusing rulings, but the law is crystal clear on this point . . .

If you withdraw your money from an IRA or other retirement account before you reach age 59 ½ , you’ll have to pay a hefty 10% penalty. Ouch!

And this penalty tax is in addition to the regular income-tax you have to pay whenever you withdraw your money from tax-deferred accounts.

I’m talking about accounts such as traditional IRAs and 401(k)s. (Roth IRAs are a somewhat different story.)

Here’s some good news.

IMPORTANT: If you’d like to get your hands on your retirement money before you reach age 59 1/2, the SECURE Act 2.0, passed by Congress in late 2022, adds several exceptions to the 10% penalty tax on early retirement account withdrawals.

The exceptions I’ll list below all relate to unpleasant events. But don’t blame me. These are the exceptions that Congress decided to enact. (Ouch, again!)

Check out these exceptions that begin in 2024, that I’m presenting in short outline form:

  • New Emergency Personal Expense Exception
  • Domestic Abuse Exception
  • Terminal Illness Exception
  • Long-Term Care Exception
  • Disaster Recovery Exception

How do you take advantage of these penalty-free withdrawal exceptions?

Well, as you can imagine, there just isn’t room in this short email to explain these exceptions in detail.

BUT… I will provide you with all the information you need to know when you…

CLICK HERE and read my
completely new article titled:

“SECURE 2.0 Adds New Escapes
from the 10% Early Withdrawal Penalty”

Filed Under: Employees, Fringe Benefits, Investments, Legislation, Retirement, Tax Planning, Tax Policy

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